Standard Life Net Income surged on 183% in 2015
19 Feb 2016 • About Standard Life (
$SL.) • By InTwits
Standard Life reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Standard Life is a company in decline: 2015 revenue growth was -46.4%, 5 years revenue CAGR was -13.7%
- Standard Life has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Standard Life ($SL.) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,086 | 19,185 | 16,816 | 16,588 | 8,892 | -46.4% |
| Net Income | 298 | 665 | 466 | 503 | 1,423 | 182.9% |
Balance Sheet
|
|---|
| Cash | 9,187 | 9,942 | 10,322 | 10,617 | 9,640 | -9.2% |
| Short Term Debt | 170 | 108 | 95 | 44 | | -100.0% |
| Long Term Debt | 1,186 | 1,868 | 1,861 | 1,612 | 1,318 | -18.2% |
Cash flow
|
|---|
| Capex | 15 | 18 | 17 | 21 | 8 | -61.9% |
Ratios
|
|---|
| Revenue growth | -51.1% | 111.1% | -12.3% | -1.4% | -46.4% | |
| Net Income Margin | 3.3% | 3.5% | 2.8% | 3.0% | 16.0% | 13.0% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | -0.0% |
| ROIC | 0.5% | 0.7% | 0.5% | 0.5% | 0.4% | -0.1% |
| ROE | 7.6% | 16.0% | 10.9% | 11.3% | 32.8% | 21.5% |
Revenue and profitability
Standard Life's Revenue dropped on 46.4% in 2015.
Net Income marign jumped on 13.0 pp from 3.0% to 16.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Standard Life had CAPEX/Revenue of 0.090%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.11%.
Return on investment
The company operates at good ROE (32.81%) while ROIC is low (0.40%). ROIC showed almost no change in 2015. ROE jumped on 21.5 pp from 11.3% to 32.8% in 2015.
Appendix 1: Peers in Life Insurance
Below we provide Standard Life benchmarking against other companies in Life Insurance industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aviva ($AV.A) | -38.8% | 40.7% | -20.4% | 25.6% | |
| Shin Kong Financial Hldg Co ($SKFS) | -5.8% | 2.2% | 0.8% | 21.5% | |
| Cathay Financial Hldg Co ($CFHS) | 41.4% | -25.4% | 58.9% | 14.8% | |
| Prudential ($PRU) | -23.4% | 49.1% | -3.8% | 14.8% | |
| Sagicor Financial Corp ($SFI) | -25.1% | 12.7% | -2.3% | -2.8% | |
| |
|---|
| Median (6 companies) | -23.4% | 9.5% | -0.7% | 14.8% | 4.0% |
|---|
| Standard Life ($SL.) | | 111.1% | -12.3% | -1.4% | -46.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sagicor Financial Corp ($SFI) | 1.3% | 1.9% | 1.8% | 2.1% | |
| Torchmark Corp ($TMK) | 0.2% | 0.1% | 0.3% | 0.5% | 1.0% |
| Shin Kong Financial Hldg Co ($SKFS) | 0.2% | 0.4% | 0.3% | 0.4% | |
| Prudential ($PRU) | 0.3% | 0.3% | 0.4% | 0.3% | |
| Aviva ($AV.A) | 0.3% | 0.5% | 0.1% | 0.3% | |
| |
|---|
| Median (6 companies) | 0.2% | 0.5% | 0.3% | 0.3% | 1.0% |
|---|
| Standard Life ($SL.) | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Torchmark Corp ($TMK) | 5.5% | 5.4% | 4.9% | 4.6% | 4.3% |
| Cathay Financial Hldg Co ($CFHS) | 0.5% | 0.6% | 0.9% | 1.3% | |
| Aviva ($AV.A) | 0.5% | 0.4% | 0.7% | 1.0% | |
| Prudential ($PRU) | 0.8% | 1.1% | 0.6% | 0.8% | |
| Shin Kong Financial Hldg Co ($SKFS) | 0.6% | 0.8% | 0.8% | 0.7% | |
| |
|---|
| Median (6 companies) | 0.6% | 0.8% | 0.8% | 1.0% | 4.3% |
|---|
| Standard Life ($SL.) | 0.5% | 0.7% | 0.5% | 0.5% | 0.4% |
